How Uganda Got Delisted From The FATF Grey List

Uganda has been delisted from Financial Action Task Force (FATF) Grey List after four years of implementing reforms needed to combat illicit financial flows.

The East African Community (EAC) member state was placed on the list in February 2020 due to strategic deficiencies in Anti-Money Laundering and Countering Financing Terrorism (AML/CFT) measures.

According to Uganda’s Financial Intelligence Authority (FIA), Uganda has implemented a series of rigorous reforms and demonstrated substantial progress in aligning its AML/CFT framework with International standards.

“Uganda’s exit from the FATF Grey List is a testament to our unwavering commitment to fostering a transparent and secure financial environment. It reflects the concerted efforts of our Government and Regulatory Authorities to strengthen our AML/CFT framework and safeguard our financial system from illicit financial activities,’ said Samuel Wandera, FIA Executive Director.

Among key reforms the country has undertaken during the four years period include adoption of the Countering of Proliferation Financing Strategy which has helped in enhancing the use of Mutual Legal Assistance and maintaining comprehensive statistics.

Uganda also developed and implemented a risk-based supervision of the financial and Designated Non Financial Business and Professionals (DNFBP) sectors, ensured that Law Enforcement Agencies and Judicial authorities apply the ML offence consistent with the identified risks as well as establishing procedures to trace and seize proceeds of crime.

Wandera said the country also sought regional collaboration with other anti-money laundering organizations with the aim of combating illicit financial inflows.

“Government of Uganda has been actively working to strengthen the effectiveness of its Anti-Money Laundering/Countering Financing of Terrorism (AML/CFT) regime to implement the action plan agreed to, with the FATF which comprised of 22 Action items,” he added.

The exit from FATF Grey List now means Uganda can now enhance its attractiveness to investors and facilitate greater access to International Financial Markets.

Kenya last week landed on the list with National Treasury saying the country has been compliant in some areas though facing challenges in others.

In a bid to seal loopholes exploited by criminals engaged in illicit financial flows, Treasury said key achievement has bee the enactment of AML/CFT Amendment Act 2022 which has helped address key legal and compliance deficiencies.

“The National Treasury is actively engaged in this process and anticipates minimal effects on the country’s financial stability and the cost of conducting business in Kenya,” said Prof. Njuguna Ndung’u, National Treasury Cabinet Secretary.